INNOVATE Corp. Announces Fourth Quarter and Full Year 2024 Results
- Infrastructure: DBM Global fourth quarter revenue of $225.7 million -- Life Sciences: MediBeacon® Transdermal GFR ("TGFR") system received FDA approval to assess kidney function -- Spectrum: Broadcasting achieved double-digit revenue growth in the fourth quarter and full year 2024 -
NEW YORK, March 31, 2025 (GLOBE NEWSWIRE) -- INNOVATE Corp. ("INNOVATE" or the "Company") (NYSE:VATE) announced today its consolidated results for the fourth quarter.
Financial Summary
(in millions, except per share amounts)
Three Months Ended December 31,
Year Ended December 31,
2024
2023
Increase / (Decrease)
2024
2023
Increase / (Decrease)
Revenue
$
236.6
$
361.0
(34.5
)%
$
1,107.1
$
1,423.0
(22.2
)%
Net loss attributable to common stockholders and participating preferred stockholders
$
(16.9
)
$
(9.6
)
(76.0
)%
$
(35.8
)
$
(37.6
)
4.8
%
Basic and diluted loss per share attributable to common stockholders(1)
$
(1.29
)
$
(1.22
)
(5.7
)%
$
(3.08
)
$
(4.81
)
36.0
%
Total Adjusted EBITDA(2)
$
15.0
$
21.5
(30.2
)%
$
71.3
$
65.0
9.7
%
(1) Basic and diluted loss per common share for the three months and year ended December 31, 2023, have been retroactively adjusted to reflect the 1-for-10 reverse stock split effected on August 8, 2024.(2) Reconciliation of GAAP to Non-GAAP measures follows
Commentary
"INNOVATE made several exciting advancements across all operating segments over the last year which capped another successful year for the business," said Avie Glazer, Chairman of INNOVATE. "The Infrastructure segment finished the year with an adjusted backlog of $1.1 billion, well-positioned to execute in 2025. At Life Sciences, in January 2025, MediBeacon's TGFR system gained FDA approval for the assessment of kidney function in patients with normal or impaired renal function. Also at Life Sciences, R2 continued gaining strong momentum in Q4, announcing collaborations with Woodhouse Spas and leading skincare product brands. At Spectrum, the Company delivered double-digit revenue growth in the fourth quarter and for the full year 2024."
"We delivered fourth quarter and full year 2024 results largely in-line with our expectations," stated Paul Voigt, INNOVATE's Interim CEO. "We are pleased with the DBM team's disciplined execution, which has resulted in robust margins for 2024 and positioned the business favorably to secure quality projects in 2025. At Life Sciences, FDA approval for MediBeacon's TGFR is a major milestone that we have been anticipating for some time. In addition, two high profile peer-reviewed kidney journals published results from MediBeacon's clinical trials supporting TGFR effectiveness and reinforcing the large unmet medical need. R2 Technologies delivered another strong quarter and expanded its market reach into several new countries. Broadcasting achieved outstanding financial results driven by new quality networks added throughout the year and its fixed cost structure. Lastly, we reduced our total debt by $54.5 million, which is a significant improvement year-over-year."
Fourth Quarter 2024 and Recent Highlights
Infrastructure
DBM Global reported fourth quarter 2024 revenue of $225.7 million, a decrease of 36.2%, compared to $353.8 million in the prior year quarter. Net Income attributable to INNOVATE was $8.7 million, compared to $8.9 million for the prior year quarter. Adjusted EBITDA decreased to $17.4 million from $30.0 million in the prior year quarter.
DBM Global grew gross margin to 18.2% in the fourth quarter, an expansion of approximately 180 basis points year-over-year, while Adjusted EBITDA margin decreased to 7.7% in the fourth quarter, a reduction of approximately 80 basis points year-over-year.
DBM Global's reported backlog and adjusted backlog, which takes into consideration awarded but not yet signed contracts, was $1.0 billion and $1.1 billion, respectively, as of December 31, 2024, compared to reported and adjusted backlog of $1.1 billion and $1.2 billion, respectively, as of December 31, 2023.
Subsequent to year end, DBM has added over $500 million to adjusted backlog across our companies and we remain optimistic on the pipeline.
Life Sciences
In January 2025, the U.S. Food and Drug Administration ("FDA") approved the MediBeacon® TGFR for the assessment of kidney function in patients with normal or impaired renal function.
In February 2025, the National Medical Products Administration ("NMPA") in China approved the MediBeacon® TGFR Monitor and TGFR Sensor for the assessment of kidney function in patients with normal or impaired renal function. Lumitrace® (relmapirazin) injection, categorized as a drug in China, is under review and is targeted for approval in late 2025.
In February 2025, two high level kidney journals published results from MediBeacon's Clinical Trials. The Journal of the American Society of Nephrology, one of the top kidney journals in the world, published the results of a clinical trial on patients with normal and impaired kidney function across a range of skin color demonstrating the TGFR clinical effectiveness. In addition, The Clinical Kidney Journal published data showing the misclassification of patients using the current clinical practice to estimating kidney function as compared to plasma derived measured kidney function with MediBeacon's Lumitrace®.
R2 Technologies, Inc. ("R2") broke system unit sales records consecutively in each quarter in North America in 2024, delivering strong year-over-year growth.
R2's worldwide system unit sales grew 113% in the fourth quarter of 2024 compared to the fourth quarter of 2023 and 182% for the full year 2024, year-over-year.
Spectrum
Broadcasting reported fourth quarter 2024 revenue of $6.8 million, compared to $5.7 million in the prior year quarter. Net Loss attributable to INNOVATE was $4.6 million compared to $5.4 million in the prior year quarter. Adjusted EBITDA was $2.3 million, compared to $1.1 million in the prior year quarter. The improvement in financial results was once again driven by revenue growth from the launch of new networks and expanded coverage with existing customers, which was partially offset by the termination of a number of smaller networks and individual markets subsequent to the comparable period.
Successful new network launches in 2024 of FreeTV's three new networks and most recently Fubo Sports in the fourth quarter.
Commenced installation of the Dallas lighthouse station for PBS station, KERA.
Pursuing commercial opportunities in datacasting together with a major mobile network operator.
Progress with 5G broadcast technology that Broadcasting has been actively deploying in new markets with trial runs performing exceptionally well.
Fourth Quarter 2024 Financial Highlights
Revenue: For the fourth quarter of 2024, INNOVATE's consolidated revenue was $236.6 million, a decrease of 34.5%, compared to $361.0 million for the prior year quarter. The decrease was driven by our Infrastructure segment, which was partially offset by increases at our Life Sciences and Spectrum segments. The decrease at our Infrastructure segment was primarily driven by the timing and size of projects, including the effect of changes in estimated costs to complete those projects recognized in the ordinary course of business, at Banker Steel and DBMG's commercial structural steel fabrication and erection business, both of which had increased activity in the comparable period on certain large commercial construction projects that have since been completed. This was partially offset by an increase at the industrial maintenance and repair business as a result of an increase in project work. The increase at our Life Sciences segment was attributable to R2, primarily driven by an increase in Glacial fx unit sales and consumables in North America and worldwide. The increase at our Spectrum segment was primarily driven by network launches and expanded coverage with existing customers.
REVENUE by OPERATING SEGMENT
(in millions)
Three Months Ended December 31,
Year Ended December 31,
2024
2023
Increase / (Decrease)
2024
2023
Increase / (Decrease)
Infrastructure
$
225.7
$
353.8
$
(128.1
)
$
1,071.6
$
1,397.2
$
(325.6
)
Life Sciences
4.1
1.5
2.6
9.8
3.3
6.5
Spectrum
6.8
5.7
1.1
25.7
22.5
3.2
Consolidated INNOVATE
$
236.6
$
361.0
$
(124.4
)
$
1,107.1
$
1,423.0
$
(315.9
)
Net Loss: For the fourth quarter of 2024, INNOVATE reported a Net Loss attributable to common stockholders and participating preferred stockholders of $16.9 million, or $1.29 per fully diluted share, compared to $9.6 million, or $1.22 per fully diluted share, for the prior year quarter, which has been retroactively adjusted to reflect the 1-for-10 reverse stock split effected on August 8, 2024. The increase in Net Loss was primarily due to a net decrease in gross profit of $14.7 million, a $1.1 million increase in tax expense, a $0.4 million increase in interest expense, and a $0.1 million increase in depreciation and amortization, which was partially offset by a decrease of $3.6 million in loss from equity investees, a $2.7 million increase in other income, net, a $2.3 million increase in other operating income, and a decrease in selling, general and administrative ("SG&A") expenses of $1.0 million. The decrease in gross profit was primarily driven by our Infrastructure segment due to timing and size of projects, including the effect of changes in estimated costs to complete those projects recognized in the ordinary course of business, partially offset by increases at our Spectrum segment driven by network launches and expanded coverage with existing customers and at our Life Sciences segment due to an increase in Glacial fx unit sales and consumable sales in North America and worldwide at R2. The increase in tax expense was driven by the INNOVATE Corp. U.S. consolidated group utilizing its remaining unlimited NOLs in 2024 and due to the Tax Cuts and Jobs Act's 80 percent limitation on net operating losses incurred after 2017. The overall decrease in loss from equity investees was primarily due to a decrease in losses recognized from MediBeacon. The overall increase in other income, net was primarily driven by an increase in foreign currency translation gains from our Infrastructure segment. The increase in other operating income primarily driven by a gain on lease modification at our Infrastructure segment in the current period and unrepeated lease impairments at our Non-Operating Corporate and Other segments in the prior year period. The overall decrease in SG&A expenses was primarily driven by timing of compensation-related expenses at our Infrastructure segment, which was partially offset by realignment costs incurred in the current year at our Infrastructure segment and an increase in selling costs at R2.
NET INCOME (LOSS) by OPERATING SEGMENT
(in millions)
Three Months Ended December 31,
Year Ended December 31,
2024
2023
Increase / (Decrease)
2024
2023
Increase / (Decrease)
Infrastructure
$
8.7
$
8.9
$
(0.2
)
$
40.3
$
28.7
$
11.6
Life Sciences
(5.4
)
(6.2
)
0.8
(19.7
)
(15.5
)
(4.2
)
Spectrum
(4.6
)
(5.4
)
0.8
(20.0
)
(22.2
)
2.2
Non-Operating Corporate
(15.3
)
(5.4
)
(9.9
)
(35.3
)
(33.2
)
(2.1
)
Other and eliminations
—
(1.2
)
1.2
0.1
7.0
(6.9
)
Net loss attributable to INNOVATE Corp.
$
(16.6
)
$
(9.3
)
(7.3
)
$
(34.6
)
$
(35.2
)
$
0.6
Less: Preferred dividends
0.3
0.3
—
1.2
2.4
(1.2
)
Net loss attributable to common stockholders and participating preferred stockholders
$
(16.9
)
$
(9.6
)
$
(7.3
)
$
(35.8
)
$
(37.6
)
$
1.8
Adjusted EBITDA: For the fourth quarter of 2024, total Adjusted EBITDA, was $15.0 million compared to total Adjusted EBITDA of $21.5 million for the prior year quarter. The decrease in Adjusted EBITDA was driven by our Infrastructure segment due to lower revenue and gross margins at Banker Steel and lower revenue, partially offset by an increase in gross margins, at DBMG's commercial structural steel fabrication and erection business due to timing of completion of certain large commercial construction projects that have been completed, including the effect of changes in estimated costs to complete those projects recognized in the ordinary course of business, as well as lower revenue and gross margins at the construction modeling and detailing business. This decrease in Adjusted EBITDA was partially offset by an increase in revenue and gross margins at our Infrastructure's industrial maintenance and repair business, a decrease in compensation-related expenses at our Infrastructure segment, fewer equity method losses recognized from MediBeacon, an increase in gross profit at R2 primarily driven by an increase in Glacial fx unit sales and consumable sales in North America and worldwide at our Life Sciences segment and an increase in revenue at our Spectrum segment primarily driven by network launches and expanded coverage with existing customers.
ADJUSTED EBITDA by OPERATING SEGMENT
(in millions)
Three Months Ended December 31,
Year Ended December 31,
2024
2023
Increase / (Decrease)
2024
2023
Increase/(Decrease)
Infrastructure
$
17.4
$
30.0
$
(12.6
)
$
89.1
$
100.6
$
(11.5
)
Life Sciences
(2.5
)
(7.1
)
4.6
(14.5
)
(23.1
)
8.6
Spectrum
2.3
1.1
1.2
7.1
2.0
5.1
Non-Operating Corporate
(2.2
)
(2.5
)
0.3
(10.4
)
(13.5
)
3.1
Other and eliminations
—
—
—
—
(1.0
)
1.0
Total Adjusted EBITDA
$
15.0
$
21.5
$
(6.5
)
$
71.3
$
65.0
$
6.3
Balance Sheet: As of December 31, 2024, INNOVATE had cash and cash equivalents, excluding restricted cash, of $48.8 million compared to $80.8 million as of December 31, 2023. On a stand-alone basis, as of December 31, 2024, our Non-Operating Corporate segment had cash and cash equivalents of $13.8 million compared to $2.5 million as of December 31, 2023.
Conference Call
INNOVATE will host a live conference call to discuss its fourth quarter 2024 financial results and operations today at 4:30 p.m. ET. The Company will post an earnings supplemental presentation in the Investor Relations section of the INNOVATE website at innovate-ir.com to accompany the conference call. Dial-in instructions for the conference call and the replay follows.
Live Webcast and Call. A live webcast of the conference call can be accessed by interested parties through the Investor Relations section of the INNOVATE website at innovate-ir.com.
Dial-in: 1-800-717-1738 (Domestic Toll Free) / 1-646-307-1865 (Toll/International)
Conference Replay*
Dial-in: 1-844-512-2921 (Domestic Toll Free) / 1-412-317-6671 (Toll/International)
Conference Number: 1192054
*Available approximately two hours after the end of the conference call through April 14, 2025.
About INNOVATE Corp.
INNOVATE Corp., is a portfolio of best-in-class assets in three key areas of the new economy, Infrastructure, Life Sciences and Spectrum. Dedicated to stakeholder capitalism, INNOVATE employs approximately 3,100 people across its subsidiaries. For more information, please visit: www.INNOVATECorp.com.
ContactsInvestor Contact:Anthony 235-2691
Non-GAAP Financial Measures
In this press release, INNOVATE refers to certain financial measures that are not presented in accordance with U.S. generally accepted accounting principles ("GAAP"), including Total Adjusted EBITDA (excluding discontinued operations, if applicable) and Adjusted EBITDA for its operating segments. In addition, other companies may define Adjusted EBITDA differently than we do, which could limit its usefulness.
Adjusted EBITDA
Management believes that Adjusted EBITDA provides investors with meaningful information for gaining an understanding of our results as it is frequently used by the financial community to provide insight into an organization's operating trends and facilitates comparisons between peer companies, since interest, taxes, depreciation, amortization and the other items listed in the definition of Adjusted EBITDA below can differ greatly between organizations as a result of differing capital structures and tax strategies. Adjusted EBITDA can also be a useful measure of a company's ability to service debt. While management believes that non-U.S. GAAP measurements are useful supplemental information, such adjusted results are not intended to replace our U.S. GAAP financial results. Using Adjusted EBITDA as a performance measure has inherent limitations as an analytical tool as compared to net income (loss) or other U.S. GAAP financial measures, as this non-GAAP measure excludes certain items, including items that are recurring in nature, which may be meaningful to investors. As a result of the exclusions, Adjusted EBITDA should not be considered in isolation and does not purport to be an alternative to net income (loss) or other U.S. GAAP financial measures as a measure of our operating performance.
The calculation of Adjusted EBITDA, as defined by us, consists of Net income (loss) attributable to INNOVATE Corp., excluding: discontinued operations, if applicable; depreciation and amortization; other operating (income) loss, which is inclusive of (gain) loss on sale or disposal of assets, lease termination costs, (gains) losses on lease modifications, asset impairment expense and FCC reimbursements; interest expense; other (income) expense, net; income tax expense (benefit); non-controlling interest; share-based compensation expense; legacy accounts receivable write-offs; realignment and exit costs; and acquisition and disposition costs.
Cautionary Statement Regarding Forward-Looking Statements
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This press release contains, and certain oral statements made by our representatives from time to time may contain, "forward-looking statements." Generally, forward-looking ...
